Reviewing Expedia Group (NASDAQ:EXPE) & RideNow Group (NASDAQ:RDNW)

RideNow Group (NASDAQ:RDNW) and Expedia Group (NASDAQ:EXPE) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

66.1% of RideNow Group shares are held by institutional investors. Comparatively, 90.8% of Expedia Group shares are held by institutional investors. 55.3% of RideNow Group shares are held by insiders. Comparatively, 5.2% of Expedia Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares RideNow Group and Expedia Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-4.28%	-2,628.57%	-1.85%
Expedia Group	9.81%	84.33%	7.42%

Valuation and Earnings

This table compares RideNow Group and Expedia Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.23	-$52.40 million	($1.24)	-5.16
Expedia Group	$14.73 billion	2.23	$1.29 billion	$11.36	23.65

Expedia Group has higher revenue and earnings than RideNow Group. RideNow Group is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for RideNow Group and Expedia Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
Expedia Group	0	23	16	0	2.41

RideNow Group currently has a consensus price target of $7.50, indicating a potential upside of 17.19%. Expedia Group has a consensus price target of $284.30, indicating a potential upside of 5.81%. Given RideNow Group’s higher probable upside, equities analysts clearly believe RideNow Group is more favorable than Expedia Group.

Risk and Volatility

RideNow Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Expedia Group has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Summary

Expedia Group beats RideNow Group on 12 of the 14 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.